PeruChapters
Ancient Peru was the seat of several prominent Andean civilizations, most notably that of the Incas whose empire was captured by Spanish conquistadors in 1533. Peru declared its independence in 1821, and remaining Spanish forces were defeated in 1824. After a dozen years of military rule, Peru returned to democratic leadership in 1980, but experienced economic problems and the growth of a violent insurgency. President Alberto FUJIMORI's election in 1990 ushered in a decade that saw a dramatic turnaround in the economy and significant progress in curtailing guerrilla activity. Nevertheless, the president's increasing reliance on authoritarian measures and an economic slump in the late 1990s generated mounting dissatisfaction with his regime, which led to his resignation in 2000. A caretaker government oversaw a new election in the spring of 2001, which installed Alejandro TOLEDO Manrique as the new head of government - Peru's first democratically elected president of indigenous ethnicity. The presidential election of 2006 saw the return of Alan GARCIA Perez who, after a disappointing presidential term from 1985 to 1990, oversaw a robust economic rebound. Former army officer Ollanta HUMALA Tasso was elected president in June 2011, and carried on the sound, market-oriented economic policies of the three preceding administrations. Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America. Pedro Pablo KUCZYNSKI Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President KUCZYNSKI offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto VIZCARRA Cornejo was sworn in as president.
Source: The CIA World Factbook - Peru
Key indicators
- Area
- 1,285,216 km2
- Population
- 32,201,224 (July 2021 est.)
- Government type
- constitutional republic
- Languages
- Spanish (official) 82.9%, Quechua (official) 13.6%, Aymara (official) 1.6%, Ashaninka 0.3%, other native languages
- GDP
- $202.014 billion (2020 est.)
- Growth rate
- -11.1% (2020 est.)
- HDI
- 79
- Capital
- Lima
Macroeconomic indicators
Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.
The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.
Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru’s lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.
Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.
Source: The CIA World Factbook - Economic overview Peru
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
13.418 |
2.684 |
-0.552 |
2.538 |
2.680 |
|
Gross domestic product, current prices Percent change (Billions) |
226.231 |
245.008 |
267.585 |
282.458 |
294.781 |
|
Gross domestic product per capita, current prices Percent change (Units) |
6,848.211 |
7,336.241 |
7,932.905 |
8,290.943 |
8,566.977 |
|
Inflation, average consumer prices Percent change (Units) |
3.979 |
7.871 |
6.269 |
2.328 |
2.009 |
|
Volume of imports of goods and services Percent change (Units) |
18.466 |
2.448 |
-4.355 |
4.644 |
3.721 |
|
Volume of exports of goods and services Percent change (Units) |
12.533 |
3.341 |
3.441 |
-1.432 |
2.030 |
|
Unemployment rate Percent change (Units) |
10.763 |
7.742 |
6.787 |
6.600 |
6.500 |
|
Current account balance Percent change (Billions) |
-5.064 |
-9.908 |
1.676 |
-3.187 |
-4.033 |
|
Current account balance Percent change (Units) |
-2.238 |
-4.044 |
0.626 |
-1.128 |
-1.368 |
Estimates
Source: IMF Statistics
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
None
Air Services agreement
None
Source: Administration des contributions directes
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in Peru
Luxembourg is represented by the Ambassade Royale des Pays-Bas à Lima
Competent post for consular affairs by the Ambassade du Royaume de Belgique à Lima
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Peru
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: http://www.ducroire.lu/en/node/41?country=178
Other Useful Links
- CIA World Factbook on Peru
- ELAN Network: European and Latin American Technology based Business network
- The Latin America IPR SME Helpdesk
- Chambre de Commerce et de Tourisme du Pérou au Luxembourg
- Flanders Investment&Trade(FIT)
- Chambre de Commerce franco-péruvienne
- Doing Business in Peru
- Das ist Peru